May 27, 2009, Introduced by Senators ALLEN, PATTERSON, BIRKHOLZ, PAPPAGEORGE, BROWN, JANSEN, CROPSEY, VAN WOERKOM, KAHN and SANBORN and referred to the Committee on Commerce and Tourism.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 62 (MCL 421.62), as amended by 1995 PA 125.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
62. (1) (a) If
the commission unemployment
agency
determines that a person has obtained benefits to which that person
is not entitled, the commission may recover a sum equal to the
amount received plus interest by 1 or more of the following
methods:
(1) deduction
(a)
Deduction from benefits payable to the
individual. , (2)
payment
(b)
Payment by the individual to the
commission in cash. , or
(3)
deduction
(c) Deduction from a tax refund payable to the individual as
provided
under section 30a of Act No. 122 of the Public Acts of
1941,
being section 205.30a of the Michigan Compiled Laws 1941 PA
122, MCL 205.30a.
(2)
Deduction from benefits payable to the
individual shall be
is limited to not more than 20% of each weekly benefit check due
the
claimant. The commission unemployment
agency shall not recover
improperly paid benefits from an individual more than 3 years, or
more than 6 years in the case of a violation of section 54(a) or
(b) or sections 54a to 54c, after the date of receipt of the
improperly
paid benefits unless : (1) the
unemployment agency filed
a
civil action is filed in a court by the commission within the 3-
year
or 6-year period , (2) or
the individual made an intentional
false statement, misrepresentation, or concealment of material
information
to obtain the benefits , or (3)
the commission
unemployment agency issued a determination requiring restitution
within
the 3-year or 6-year period. Furthermore, except Except in
a
case of an intentional false statement, misrepresentation, or
concealment of material information, the commission may waive
recovery of an improperly paid benefit or interest if the payment
was not the fault of the individual and if repayment would be
contrary to equity and good conscience.
(3) (b)
For benefit years beginning before the
conversion date
prescribed
in section 75 October 1, 2000, if the commission
unemployment agency determines that a person has intentionally made
a false statement or misrepresentation or has concealed material
information to obtain benefits, whether or not the person obtains
benefits by or because of the intentional false statement,
misrepresentation, or concealment of material information, the
person shall, in addition to any other applicable interest and
penalties, have all of his or her uncharged credit weeks with
respect to the benefit year in which the act occurred canceled as
of
the date the commission unemployment
agency receives notice of,
or initiates investigation of, the possible false statement,
misrepresentation, or concealment of material information,
whichever date is earlier. Before receiving benefits in a benefit
year established within 2 years after cancellation of uncharged
credit weeks under this subsection, the individual, in addition to
making
the restitution of benefits established under subsection (a)
subsections
(1) and (2), may be liable to the commission
unemployment agency, by cash, deduction from benefits, or deduction
from a tax refund, for an additional amount as determined by the
commission
unemployment agency under this act. Restitution
resulting from the intentional false statement, misrepresentation,
or concealment of material information is not subject to the 20%
limitation
provided in subsection (a) (2). For benefit years
beginning
after the conversion date prescribed in section 75 on or
after
October 1, 2000, if the commission unemployment agency
determines that a person has intentionally made a false statement
or misrepresentation or has concealed material information to
obtain benefits, whether or not the person obtains benefits by or
because of the intentional false statement, misrepresentation, or
concealment of material information, the person shall, in addition
to any other applicable interest and penalties, have his or her
rights to benefits for the benefit year in which the act occurred
canceled
as of the date the commission unemployment
agency receives
notice of, or initiates investigation of, a possible false
statement, misrepresentation, or concealment of material
information, whichever date is earlier, and wages used to establish
that benefit year shall not be used to establish another benefit
year. Before receiving benefits in a benefit year established
within 2 years after cancellation of rights to benefits under this
subsection, the individual, in addition to making the restitution
of
benefits established under subsection (a) subsections (1) and
(2), may be liable to the commission unemployment agency, by cash,
deduction from benefits, or deduction from a tax refund, for an
additional
amount as otherwise determined by the commission
unemployment agency under this act. Restitution resulting from the
intentional false statement, misrepresentation, or concealment of
material information is not subject to the 20% limitation provided
in
subsection (a) (2).
(4) (c)
Any determination made by the commission
unemployment
agency under this section is final unless an application for a
redetermination
is filed with the commission unemployment
agency in
accordance with section 32a.
(5) (d)
The commission unemployment agency shall take the
action necessary to recover all benefits improperly obtained or
paid under this act plus interest, and to enforce all penalties
under
subsection (b) (3).
(6) Interest recovered under this section shall be deposited
in the administration fund created in section 10. The interest so
deposited shall be expended first to acquire, through a competitive
bid process, packaged software that has a proven record of success
in detecting and collecting unemployment benefit overpayments,
before being applied to other administrative expenses.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No. 615.
(b) Senate Bill No.____ or House Bill No.____ (request no.
01821'09).
(c) Senate Bill No. 614.
(d) Senate Bill No. 613.